BANKS
IDFC First Bank Q2 net up 75.6% at Rs 352 cr
IDFC First Bank’s Q2 net interest income up 6.8% YoY; gross NPA falls to 1.86% from 1.92% a year ago while bank expects NIM to improve from Q3.
IDFC First Bank’s Q2 net interest income up 6.8% YoY; gross NPA falls to 1.86% from 1.92% a year ago while bank expects NIM to improve from Q3.
IDFC First Bank posted a 75.6% rise in net profit to Rs 352.3 crore in the fiscal second-quarter compared to Rs 200.7 crore a year ago.
The private lender’s total interest income rose 10.9% to Rs 9,936.8 crore in the quarter ended September 2025, from Rs 8,956.9 crore in the earlier year.
NII and NIM
Net interest income (NII) rose 6.8% to Rs 5,113 crore, from Rs 4,788 crore in the same quarter of the previous year.
Net interest margin (NIM) declined by 59 basis points year-on-year to stand at 5.59% as of 30 September 2025. Sequentially, it was down by 12 basis points.
The NIM compression was largely due to the impact of repo changes in Q1 FY26 and asset mix changes, including further decline in the microfinance business.
The bank feels that NIM has largely bottomed out in this quarter and expects it to improve in Q3. By the end of Q4, the lender believes NIM would expand to 5.8% upwards.
The microfinance issue is also behind the bank.
Asset quality
The bank's asset quality improved, with gross non-performing assets (NPAs) standing at 1.86% in the September quarter compared to 1.92% a year ago and 1.97% a quarter ago.
Net NPAs were at 0.52% as of 30 September 2025 compared to 0.55% in the preceding June quarter.
Loan growth
The bank’s loan book rose 19.7% YoY to Rs 2.67 lakh crore.
Retail loans grew 19.5% to Rs 1.56 lakh crore as of 30 September compared to Rs 1.31 lakh crore a year ago. Out of this, mortgage grew 14.7% YoY to Rs 59,068 crore in the September quarter while vehicle credit surged 27.9% to Rs 30,246 crore.
Deposits
Customer deposits grew 23.4% YoY to Rs 2.69 lakh crore.
The lender’s total business stood at Rs 5.36 lakh crore as of 30 September 2025.
CASA (current account savings account) deposits jumped 26.8% YoY to Rs 1.39 lakh crore in the September quarter, from Rs 1.09 lakh crore a year ago.
CASA ratio improved by 119 basis points from the earlier year to 50.1% as of 30 September 2025. It was at 48.9% in the year-ago period.
The credit-to-deposit ratio stood at 94.2%. The goal is to bring it down to the mid-80 levels.
